An Inquiry Into The Pulling Effect Of Town Construction On County Economy

As an important national administrative region, counties have a very important role and position. Social and economic development of counties is directly related to the development of the country. Therefore, the research on development of the counties has always been the concern of society, and also the party and country have attached particular importance to the development of the Counties. And in the context of economic development being the central, the research on the development of counties'economy thus has become one of counties'top priorities.In 2002, the Party's National Congress meeting clearly stated the concept of county economy for the first time and put forward to developing county economy forcefully, to solve the problems in the national economy, thus setting off a new round of research climax on the county economy. People also attach great importance to the economic development in counties to address such as "three dimensional rural" issues and transferring rural surplus labor problem. According to statistics, China counties' GDP has accounted for 60% of the total GDP, and in some developed areas in the eastern part, the percentage is even higher; Local financial revenues has accounted for about 25% of the country. But at the same time counties'population account for 73% of the country, and this demonstrate that county economic development in China is relatively backward, directly affecting the further development of the national economy, in particular, it is not conducive to solve "three dimensional rural" issues. Therefore, under the background of great importance being given to the county economy, the research on county economy will continue as the socio-economic development goes on, and there is an objective necessity.With a detailed study, the county's economic research focuses more attention on the micro level, differing from the initial with more attention on the macro level; In the study of regional scope, the researches transit from the nationwide to the regional level or case studies; the research methods, with the introduction of econometric methods, mainly transit from the qualitative analysis to evidence-based analysis and quantitative analysis. These changes, on the one hand, enrich the content of the county economy's research; on the other hand, it also highlights that the county economy's status and place are attaching more and more attention. In view of this, I try to conduct a case study, using empirical analysis methods to study a specific factor's impact on the county economic development. During the various factors affecting economic development in the county, town construction becomes the focus of research, and the practice also shows the town construction places an important role on the county economic development. So, I try to conduct a case analysis, setting town construction as an explanatory variable, and qualitatively and quantitatively study its impact on the county economic development.Huaining County, Anhui Province, in 1998, began its town construction with the new county building being the priority, and since then Huaining county economy develops rapidly and the results are gratifying. Therefore, in view of this background, the author studies the impact of town construction, setting Huaining as a model.This paper, using qualitative analysis and empirical analysis, researches the impact of town construction on promoting the development of Huaining county economy from 1998 to 2008. The first chapter is an introduction, mainly discussing the background of this article, the significance and relevant literature review, etc.; The second chapter is about the definition of some concepts and the index system; The third chapter is about the theory of town construction in driving the development of county economy, mainly about the reasons, content and mechanism theory. It mainly uses qualitative analysis; The fourth chapter, Mainly using econometric methods, quantitatively analyses the town construction's pulling effect, studying the relationship between town construction and GDP, fiscal revenue, living standards and county industrial structure. Through analysis, there is a strong correlation between town construction and county GDP, fiscal revenue, income level and county industrial structure, but the correlation between town construction and urbanization is not significant. In fact, during this period, Huaining County towns have developed very rapidly, while the level of urbanization is very low, and grows slowly. This indicates that there are some problems and shortcomings existing in the town construction.Thus, the paper suggests that town construction can greatly stimulate the county economic development, and eligible regions can develop cities and towns, in order to promote the development of county economy. But to fully play its due role, town construction should be consistent with local realities.Finally, based on the qualitative and quantitative studies, aiming at the weaknesses and problems of the town construction in Huaining,to raise the level of urbanization, the fifth chapter mainly presents several policy recommendations as follows:to increase the urban infrastructure construction; to consolidate the layout of township and develop a scientific plan; to develop township enterprises; to increase policy support, and vigorously coordinate the urban and rural development; to upgrade the county's soft environment, and protect the county's long-term economic development; to focus on the selection and development of leading industries.Of course, town construction is just one of the numinous factors affecting the development of county economy, so town construction cannot be carried out in isolation. We must rely on the county economy, unify local conditions, timely and appropriately conduct the project of town construction.